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Can Hydrogen Become a Key Growth Driver for NuScale Power?
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Key Takeaways
NuScale Power's six-module plant could produce about 250-270 metric tons of hydrogen per day.
Its reactors can be built near industrial users, reducing the need to transport hydrogen long distances.
NuScale Power can shift between electricity and hydrogen production while working alongside renewables.
NuScale Power Corporation’s (SMR - Free Report) hydrogen opportunity comes from using its small modular reactors to produce large quantities of carbon-free hydrogen for industrial users. The advanced nuclear company has been studying this application since 2014. A NuScale plant with six reactor modules, connected to a hydrogen production system, could generate about 250-270 metric tons of hydrogen per day. This could serve industries that already use large amounts of hydrogen, including fertilizer, refining and methanol production.
A major advantage is the ability to place NuScale’s reactors close to factories that actually need hydrogen. The plants require roughly 40 acres and can operate without depending on the wider electricity grid. This could allow a facility to be built near an ammonia plant or another industrial customer, reducing the need to transport hydrogen over long distances. The same plant could also provide electricity, process heat and oxygen, giving customers several useful energy products from one site.
NuScale’s technology could also make hydrogen production more dependable and flexible. Nuclear reactors can provide a steady supply of electricity and heat, helping hydrogen facilities operate for long periods without frequent interruptions. NuScale’s reactors can also shift between producing electricity and supporting hydrogen production based on demand. They can work alongside renewable energy as well, giving industrial customers a more flexible way to meet both their power and hydrogen needs.
The hydrogen market is increasingly attracting interest as industries look for cleaner ways to meet their energy and fuel needs. Opportunities are emerging across hydrogen production, supporting equipment and infrastructure, creating multiple paths to benefit from wider adoption.
Other Companies Tapping the Hydrogen Opportunity
FuelCell Energy’s (FCEL - Free Report) hydrogen opportunity comes from technology that can produce hydrogen while generating electricity and heat. FuelCell Energy already supplies hydrogen and power to Toyota’s Long Beach site under a 20-year agreement. FuelCell Energy’s carbonate fuel cells can also produce hydrogen alongside carbon capture, which could lower the overall cost of capturing emissions. This gives the company exposure to cleaner industrial energy and hydrogen demand.
Meanwhile, Plug Power (PLUG - Free Report) is building its hydrogen opportunity around both hydrogen production plants and electrolyzers, which are machines to produce hydrogen. Plug Power has hydrogen plants in Georgia, Louisiana and Tennessee with 40 tons-per-day of combined designed capacity. Plug Power is also advancing electrolyzer projects in Portugal, Spain and the U.K., while pursuing larger opportunities in Canada and Uzbekistan, including green ammonia and sustainable aviation fuel applications.
The Zacks Rundown on NuScale Power
Shares of SMR have lost more than 20% over the past six months.
Image Source: Zacks Investment Research
NuScale Power currently has an average brokerage recommendation of 2.58 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Can Hydrogen Become a Key Growth Driver for NuScale Power?
Key Takeaways
NuScale Power Corporation’s (SMR - Free Report) hydrogen opportunity comes from using its small modular reactors to produce large quantities of carbon-free hydrogen for industrial users. The advanced nuclear company has been studying this application since 2014. A NuScale plant with six reactor modules, connected to a hydrogen production system, could generate about 250-270 metric tons of hydrogen per day. This could serve industries that already use large amounts of hydrogen, including fertilizer, refining and methanol production.
A major advantage is the ability to place NuScale’s reactors close to factories that actually need hydrogen. The plants require roughly 40 acres and can operate without depending on the wider electricity grid. This could allow a facility to be built near an ammonia plant or another industrial customer, reducing the need to transport hydrogen over long distances. The same plant could also provide electricity, process heat and oxygen, giving customers several useful energy products from one site.
NuScale’s technology could also make hydrogen production more dependable and flexible. Nuclear reactors can provide a steady supply of electricity and heat, helping hydrogen facilities operate for long periods without frequent interruptions. NuScale’s reactors can also shift between producing electricity and supporting hydrogen production based on demand. They can work alongside renewable energy as well, giving industrial customers a more flexible way to meet both their power and hydrogen needs.
The hydrogen market is increasingly attracting interest as industries look for cleaner ways to meet their energy and fuel needs. Opportunities are emerging across hydrogen production, supporting equipment and infrastructure, creating multiple paths to benefit from wider adoption.
Other Companies Tapping the Hydrogen Opportunity
FuelCell Energy’s (FCEL - Free Report) hydrogen opportunity comes from technology that can produce hydrogen while generating electricity and heat. FuelCell Energy already supplies hydrogen and power to Toyota’s Long Beach site under a 20-year agreement. FuelCell Energy’s carbonate fuel cells can also produce hydrogen alongside carbon capture, which could lower the overall cost of capturing emissions. This gives the company exposure to cleaner industrial energy and hydrogen demand.
Meanwhile, Plug Power (PLUG - Free Report) is building its hydrogen opportunity around both hydrogen production plants and electrolyzers, which are machines to produce hydrogen. Plug Power has hydrogen plants in Georgia, Louisiana and Tennessee with 40 tons-per-day of combined designed capacity. Plug Power is also advancing electrolyzer projects in Portugal, Spain and the U.K., while pursuing larger opportunities in Canada and Uzbekistan, including green ammonia and sustainable aviation fuel applications.
The Zacks Rundown on NuScale Power
Shares of SMR have lost more than 20% over the past six months.
NuScale Power currently has an average brokerage recommendation of 2.58 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms.
See how the Zacks Consensus Estimate for SMR’s earnings has been revised over the past 90 days.
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.